The Union Cabinet led by Prime Minister Narendra Modi announced a Unified Pension Scheme (UPS) on Saturday (Aug 24), which aims to increase the retirement benefits for 23 lakh central government employees.

The UPS has certain elements of both the Old Pension Scheme (OPS) and the current National Pension Scheme (NPS) that will benefit the employees. The scheme will be effective from April 1, 2025, and will include assured pensions, family pensions, and minimum pensions to provide financial security for government workers after retirement.

Central government employees will be given the option to choose between UPS and NPS. Employees who are already NPS subscribers will be given an option to switch to UPS.

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<h2>Key features of the Unified Pension Scheme</h2>

Assured pension

Employees who subscribe to the UPS with at least 25 years of service will get an assured pension of 50% of their average basic pay over the last 12 months before retirement. Other employees having a minimum of 10 years of service will be eligible for a pension proportionate to their tenure.

Assured family pension

UPS provides an assured family pension after their demise, according to which the employee's spouse will be given 60% of the pension drawn before their death.

Assured minimum pension

Employees who retire before completing 25 years of their service will be assured a minimum pension of&nbsp; Rs 10,000 monthly after retirement with a minimum of 10 years of service.

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Inflation indexation

For the subscribers of UPS, the assured pension, family pension and minimum pension will be indexed to inflation.

Dearness Relief

Both serving and retired employees under the UPS will get Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).&nbsp;

Lump sum payment on superannuation

Apart from the assured pension, subscribers of UPS will also receive a lump sum payment on superannuation along with gratuity. This payment will amount to 1/10th of the employee's monthly emoluments, which includes pay and Dearness Allowance, as of the date of retirement for every completed six months of service.&nbsp;

(With inputs from agencies)

The Union Cabinet led by Prime Minister Narendra Modi announced a Unified Pension Scheme (UPS) on Saturday (Aug 24), which aims to increase the retirement benefits for 23 lakh central government employees.

The Union Cabinet led by Prime Minister Narendra Modi announced a Unified Pension Scheme (UPS) on Saturday (Aug 24), which aims to increase the retirement benefits for 23 lakh central government employees. The UPS has certain elements of both the Old Pension Scheme (OPS) and the current National Pension Scheme (NPS) that will benefit the employees. The scheme will be effective from April 1, 2025, and will include assured pensions, family pensions, and minimum pensions to provide financial security for government workers after retirement. Central government employees will be given the option to choose between UPS and NPS. Employees who are already NPS subscribers will be given an option to switch to UPS. Also read | India: BJP urges top poll body to change Haryana election dates, Congress reacts Key features of the Unified Pension Scheme Assured pension Employees who subscribe to the UPS with at least 25 years of service will get an assured pension of 50% of their average basic pay over the last 12 months before retirement. Other employees having a minimum of 10 years of service will be eligible for a pension proportionate to their tenure. Assured family pension UPS provides an assured family pension after their demise, according to which the employee's spouse will be given 60% of the pension drawn before their death. Assured minimum pension Employees who retire before completing 25 years of their service will be assured a minimum pension of Rs 10,000 monthly after retirement with a minimum of 10 years of service. Also read | Home Minister Amit Shah chairs crucial meeting to strengthen anti-Naxal strategy; officials of 7 states attend Inflation indexation For the subscribers of UPS, the assured pension, family pension and minimum pension will be indexed to inflation. Dearness Relief Both serving and retired employees under the UPS will get Dearness Relief based on the All India Consumer Price Index for Industrial Workers (AICPI-IW). Lump sum payment on superannuation Apart from the assured pension, subscribers of UPS will also receive a lump sum payment on superannuation along with gratuity. This payment will amount to 1/10th of the employee's monthly emoluments, which includes pay and Dearness Allowance, as of the date of retirement for every completed six months of service. (With inputs from agencies)

What is Unified Pension Scheme? Here's what you should know

Swiss voters, on Sunday (Mar 2) overwhelmingly backed a “historic” proposal to increase pension payments for the elderly as the country’s ageing population was faced with a rise in the cost of living. Meanwhile, the proposal to raise the statutory retirement age was comfortably defeated.

The call for adding a 13th monthly pension payment each year was made by the trade unions and backed by around 58 per cent of voters with less than 42 per cent of people voting against it.

<h2>Swiss voters support pension increase</h2>

The final polls had shown that the proposal may garner enough votes to pass, but the results show a more emphatic victory than suggested.&nbsp;

However, the separate vote to raise Switzerland’s retirement age to 66 from 65 was rejected by around three-quarters of voters. The AVIVO pensioners’ association hailed the pension increase as “a historic victory”.&nbsp;

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The proposal ‘Better living in retirement’ promoted by the Swiss Trade Union Federation and left-of-centre parties, also required the backing of a majority of Switzerland’s 26 cantons to pass. Notably, the proposal was strongly opposed by cantons with lower taxes.&nbsp;

According to the results, 10 cantons rejected the move while support in six cantons was above 70 per cent and more than 82 per cent in the western Jura region.&nbsp;

“I’m retired now and so obviously I would like a bit more,” Mery, a 65-year-old Zurich voter told Reuters, saying that increased pension payments made sense. “It should allow me to give a little something to my grandchildren.”

The Sunday vote marks the first time that Swiss voters have accepted a popular proposal to alter the country’s social security system, reported ATS-Keystone news agency.

The vote also marked the first victory of Swiss trade unions in pushing through an initiative under the country’s direct democratic system.

<h2>Why were people opposing this measure?</h2>

The government, which currently leans to the right, had called the proposal financially unsound and warned that the pension increase would cost more than $4.5 billion (four billion Swiss francs) per year, which would require tax increases and threaten the financial stability of the social security system.

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“If the initiative passes, a lot of retirees will receive a 13th social security payment even though they don’t really need it,” the government had said ahead of the vote.&nbsp;

Zurich, Switzerland’s biggest conurbation, is reportedly among the world’s most expensive cities. It was not immediately clear how the pension boost, which may take effect from 2026, will be funded.

Currently, Switzerland’s minimum old age and survivors (AHV) pension is $1,393 per month and the maximum is around $2,771. Meanwhile, for couples, it is $4,156. &nbsp;

(With inputs from agencies) 
&nbsp;

Swiss voters, on Sunday (Mar 2) overwhelmingly backed a “historic” proposal to increase pension payments for the elderly as the country’s ageing population was faced with a rise in the cost of living.

Swiss voters, on Sunday (Mar 2) overwhelmingly backed a “historic” proposal to increase pension payments for the elderly as the country’s ageing population was faced with a rise in the cost of living. Meanwhile, the proposal to raise the statutory retirement age was comfortably defeated. The call for adding a 13th monthly pension payment each year was made by the trade unions and backed by around 58 per cent of voters with less than 42 per cent of people voting against it. Swiss voters support pension increase The final polls had shown that the proposal may garner enough votes to pass, but the results show a more emphatic victory than suggested. However, the separate vote to raise Switzerland’s retirement age to 66 from 65 was rejected by around three-quarters of voters. The AVIVO pensioners’ association hailed the pension increase as “a historic victory”. Also Read | Israel-Gaza war: Israel 'boycotts' Cairo talks with Hamas over unknown fate of hostages The proposal ‘Better living in retirement’ promoted by the Swiss Trade Union Federation and left-of-centre parties, also required the backing of a majority of Switzerland’s 26 cantons to pass. Notably, the proposal was strongly opposed by cantons with lower taxes. According to the results, 10 cantons rejected the move while support in six cantons was above 70 per cent and more than 82 per cent in the western Jura region. “I’m retired now and so obviously I would like a bit more,” Mery, a 65-year-old Zurich voter told Reuters, saying that increased pension payments made sense. “It should allow me to give a little something to my grandchildren.” The Sunday vote marks the first time that Swiss voters have accepted a popular proposal to alter the country’s social security system, reported ATS-Keystone news agency. The vote also marked the first victory of Swiss trade unions in pushing through an initiative under the country’s direct democratic system. Why were people opposing this measure? The government, which currently leans to the right, had called the proposal financially unsound and warned that the pension increase would cost more than $4.5 billion (four billion Swiss francs) per year, which would require tax increases and threaten the financial stability of the social security system. Also Read | Death toll rises to 10 in Russian drone attack on Ukraine's Odesa; Zelensky calls for Western air defence “If the initiative passes, a lot of retirees will receive a 13th social security payment even though they don’t really need it,” the government had said ahead of the vote. Zurich, Switzerland’s biggest conurbation, is reportedly among the world’s most expensive cities. It was not immediately clear how the pension boost, which may take effect from 2026, will be funded. Currently, Switzerland’s minimum old age and survivors (AHV) pension is $1,393 per month and the maximum is around $2,771. Meanwhile, for couples, it is $4,156. (With inputs from agencies)

Swiss overwhelming vote in support of ‘historic’ pension increase

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